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Performance Based Regulation Report

2016 PA 341,Sec. 6u requires the Commission to commence a study addressing performance based regulation (PBR), under which a utility’s authorized rate of return would depend on the utility achieving targeted policy outcomes. Commission staff will initially collaborate with stakeholders on this topic including representatives of each customer class, utilities whose rates are regulated by the Commission and other interested parties.

The Commission shall provide a report to the legislature and governor based on the result of the study conducted under this section by April 20, 2018.

Accomplishments

Internal MPSC workgroup collected and reviewed pertinent literature

Five stakeholder meetings have been held

Stakeholder participation has included utilities, AG’s office, other organizations and non-profit agencies

Outside resources including the Brattle Group, Accenture and the Regulatory Assistance Project have participated with the stakeholder sessions

MPSC workgroup has assembled a draft PBR report for stakeholder and Commission review

Draft report includes appendices document for reference to technical material